Asia Pacific

Standard & Poor’s, the ratings agency, has cut its outlook on China’s government credit to ‘negative’ from ‘stable’ as it believes rebalancing of the world’s second largest economy would take place more slowly than expected, the Irish Times reported. China’s credit rating is AA- with a negative outlook, S&P said on its website. The agency also affirmed the long-term and A-1+ short-term sovereign credit ratings for China.

McAleese has started exclusive negotiations with Hong Kong-based hedge fund SC Lowy over a financial restructuring and extended its trading suspension for another month, The Sydney Morning Herald reported. The troubled transport group received three indicative proposals from financial groups prepared to help fund a debt restructure, but has given SC Lowy exclusive negotiating rights until April 15. McAleese' net debt rose to $188 million in the six months to December compared with $170.5 million a year earlier and the company has a "current asset deficiency" of $163.2 million.

Prime Minister David Cameron faced a new economic and political challenge on Wednesday after the Indian owner of much of Britain’s steel industry said it could no longer swallow the large losses being generated by its plants and would try to sell them, the International New York Times reported. The owner of the plants, Tata Steel, has been squeezed by cheap imports of Chinese steel into Europe, and its announcement suggested that if no buyer could be found it would consider closing them, endangering at least 15,000 jobs.

A thrifty Asian powerhouse saves and invests its way to economic stardom, inspiring admiration and paranoia in the rich world. The powerhouse begins to lose momentum, driving its corporations to switch their investment appetites towards assets abroad. But, lacking worldly experience, the corporations bungle. Billions in hard-earned national savings disappear down a black hole.

Japan’s prime minister insists he will raise consumption tax to 10 per cent next year and has hinted that another economic stimulus package is being planned, the Financial Times reported. Shinzo Abe said before leaving for Washington he would press ahead with the tax rise unless there was a natural disaster or economic blow as big as the Lehman Brothers bankruptcy. But Mr Abe also began to prepare for another fiscal stimulus, already under discussion within his party, and warned of downside risks to the global economy.

China’s economic collapse no longer seems imminent. The Wall Street hedge funds who bet against the Chinese currency have taken heavy losses and battered stock markets are stabilizing, The Wall Street Journal reported. In fact, collapse was never in the cards. Over the short term, as Beijing has demonstrated, it has enough financial firepower left to fight off threats to stability and prevent the economy from stalling. It’s time to worry about something much more likely: political failure.

High on the Chinese government’s priority list is building leaner, more competitive state companies, The Wall Street Journal reported. But the dismal earnings reported by national oil giants in recent days underscore the difficulties in meeting that goal. These companies are maintaining large workforces even as Western peers continue to slash payrolls in response to the collapse in oil prices. The listed units of China’s big three oil companies reported sharply lower earnings for 2015.

Skymark Airlines Inc. exited bankruptcy administration and forecast its first operating profit in three years after reducing its fleet, cutting routes and securing new funding, The Japan Times reported on a Bloomberg News story. The carrier expects to report ¥1.5 billion ($13 million) in operating profit and sales of ¥70 billion for the year ending March 31, Skymark said in a statement Monday. Skymark also said it’s targeting an “early relisting” of its shares after filing for bankruptcy protection last year. Private equity firm Integral Corp.

Global miners have bought back billions of dollars of their debt in a display of financial strength designed to address investor concerns over their leverage as they try to deal with the after-effects of the commodities slump, the Financial Times reported. Miners including Barrick Gold and Anglo American completed $2.5bn of bond repurchases this month. They join other miners including Vedanta Resources, Glencore and Fortescue Metals Group to have bought back part of previously issued debt in recent months.

Japan’s prime minister insists he will raise consumption tax to 10 per cent next year and has hinted that another economic stimulus package is being planned, the Financial Times reported. Shinzo Abe said before leaving for Washington he would press ahead with the tax rise unless there was a natural disaster or economic blow as big as the Lehman Brothers bankruptcy. But Mr Abe also began to prepare for another fiscal stimulus, already under discussion within his party, and warned of downside risks to the global economy.